Nigerian, Australian Companies Dominate Uganda Bids Round

Three of seven firms that have submitted bids for the next round of licensing in Uganda’s licensing round are from Nigeria according to the ministry of energy.

oil discoveries UgandaAmong the companies include WalterSmith Petroman Oil Limited, Oranto Petroleum International Ltd, Niger Delta Petroleum Resources Ltd  all from Nigeria as well as Rift Energy Corporation of Canada, Glint Energy LLC of USA, Armour Energy Limited  and Swala Energy Ltd both from Australia.

The seven will now hope to receive the blocks on offer that include: Ngassa in Hoima District, Taitai & Karuka (565 Km2) in Buliisa District, Ngaji (895 Km2) in Rukungiri & Kanungu Districts, Mvule (344 Km2) in Moyo and Yumbe Districts, as well as Turaco (425 Km2) and Kanywantaba (344 Km2) in Ntoroko District.

“The attraction of seven bidders is significant taking into consideration the current low global oil and gas prices. The good success of the bidding process is largely attributed to geological success within the Albertine Graben and the fact that majority of the blocks on offer have proven oil and gas potential,” Fred Kabagambe-Kaliisa, the permanent secretary in the Ministry of Energy, said in a statement.

Earlier in November last year Uganda through the Ministry of Energy and Mineral Development held the bidders conference to provide clarifications to the request for proposals documents, relevant laws, regulations and model Production Sharing Agreements (mPSA).

Nine other firms that had earlier expressed interest and received bid documents did not bid including: Brightoil Petroleum Uganda Ltd,UAE’s  MDC Oil And Gas,India’s  Oil And Natural Gas Corporation Videsh Limited   Petoil Limited of Turkey, Norway’s Petrica Energy AS, SASOL Exploration and Production International Limited of South Africa  and  Tullow Oil of Ireland.

Notably among the seven companies include companies which lobbyist say have a questionable environmental and social track record. Conservation groups will also be unhappy with the continued inclusion in the bidding process of blocks they consider to be part of the Virunga National Park.

The next step will be an evaluation of the bids and will be based on the proposed work programme, technical and financial capability, national content, health safety and environment, proposed royalty and signature bonus.

Leave a Reply